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DRIP Calculator — Dividend Reinvestment (Snowball) Projection
See how reinvested dividends, monthly contributions, dividend growth and price growth combine over time, year by year.
Project your dividend snowball
| Year | Shares | Dividends that year | Total contributed | Portfolio value |
|---|
How the model works
Each simulated year, the model adds twelve monthly contributions, buys shares at the current modelled price, pays a dividend equal to shares × dividend per share, and — if reinvestment is on — uses that dividend to buy more shares. The price and the dividend per share then grow by the rates you entered, and the next year begins. This is the same compounding idea behind the dividend snowball: income buys assets, and assets buy more income.
How to use the result honestly
Treat the final number as a scenario, not a promise. The two most abused inputs are dividend growth and price growth: set both to zero to see the floor case, then raise them gradually. Also compare the total contributed column with the portfolio value column — the gap is what compounding is assumed to add, and it depends entirely on the market cooperating.
Frequently asked questions
What is DRIP?
DRIP stands for dividend reinvestment plan. Instead of taking dividends as cash, you automatically use them to buy more shares, which then pay dividends of their own. Our guide explains it in full: What is DRIP?
Does reinvesting really make a big difference?
Over long periods it can, because each reinvested payment increases the share count that generates the next payment. The effect is small in the first years and larger later — run this calculator with reinvestment on and off to see the gap.
Are fractional shares assumed?
Yes. This projection assumes dividends can buy fractional shares, which many brokers and fund DRIP programs allow. If yours does not, your real result will lag slightly while cash waits to be invested.
What dividend growth rate should I use?
Use a cautious figure. A fund that has grown its dividend quickly in the past may grow more slowly in future. Testing 0% growth shows what happens if dividends never rise.
Does this include tax?
No. In many countries reinvested dividends are still taxable in the year they are paid, even though you never see the cash. Check your local rules; this projection is pre-tax.